Data Theft Response Plan

Act Fast & Stay Compliant: Secure Your Firm with a Data Theft Response Plan

The IRS and FTC recommend that tax professionals have a Data Theft Response Plan in place to handle security breaches, report incidents, and protect client data. Don’t wait until a breach happens—be prepared to act immediately.

Barith’s Expertly Crafted Plan Keeps You in Control During a Crisis

Each Barith plan is tailored to your firm’s needs & includes:

Incident Detection & Response Steps
IRS & State Agency Reporting Guidelines
FTC Compliance & Notification Procedures
Client & Stakeholder Communication Plan
Risk Assessment
Employee Roles & Responsibilities
Post-Breach Review & Security Enhancements

Without a Data Theft Response Plan, Your Firm Is at Risk

A cyber incident can happen at any time. Without a clear response plan, your firm risks financial loss, compliance issues, and reputational damage. Be proactive—know how to act before a breach occurs. Your firm is at serious risk of experiencing the effects below should you neglect to adopt a plan.

Uncoordinated Response to a Security Incident

Without a clear plan, your firm may waste valuable time determining how to react, leading to delays in containment, investigation, and recovery efforts.

Increased Risk of Client Data Exposure

A lack of preparation makes it harder to secure sensitive client data, increasing the chances of identity theft, fraud, and financial losses for both your firm and your clients.

Regulatory Compliance Challenges

While the IRS requires a WISP, it also recommends a Data Theft Response Plan to complement your security strategy. Firms without one may struggle to meet regulatory expectations and demonstrate due diligence in case of an audit.

Missed Reporting Deadlines

The FTC requires businesses to report data breaches affecting 500 or more individuals within 30 days. Without a response plan, your firm may fail to meet legal obligations or face scrutiny from regulatory agencies.

Financial & Legal Consequences

Data breaches can result in costly legal fees, settlements, and potential fines, all of which could have been minimized with a structured incident response process.

Reputational Damage & Loss of Client Trust

Clients expect their financial data to be secure. A poorly handled data breach can erode trust, damage your firm’s reputation, and result in lost business.

Why Trust Barith for Your Data Theft Response Plan?

At Barith, we specialize in policy documentation tailored specifically for CPAs, tax professionals, and fintech firms, ensuring that every plan aligns with industry regulations and best practices. We understand the unique security challenges financial firms face and develop comprehensive, actionable response plans that not only protect your business from data breaches but also help you navigate IRS, FTC, and state agency reporting requirements. With our expertise, you can trust that your firm will have a clear, structured plan in place to mitigate risks, maintain compliance, and safeguard client data effectively.